OFFSETS INVOLVING WARRANTS, RIGHTS, INSTALLMENT RECEIPTS AND OTHER EXERCISABLE SECURITIES

5662. Offset where exercisable security is held long and is not currently exercisable

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    1. Where a Dealer Member or a client holds a long position in an exercisable security which is not currently exercisable and a short position in the underlying security and equivalent quantities of both positions are held, the two positions may be offset and the minimum margin required for both positions may be computed as the sum of:

      1. the exercise loss, if any,

      2. and

      3. for client account positions, the amount of the exercise or subscription payment,

      4. and

      5. 40% of the margin otherwise required on the underlying securities.

    There is no history log for this rule.

    There is no history log for this rule.